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Samsung receives Rs 500 cr incentives under PLI Scheme for increased production
Industry News- Sep 21,23
The South Korean electronics manufacturer had submitted a claim under the PLI scheme for large-scale electronics manufacturing, which was introduced in 2020.
A senior government official has confirmed that Samsung Electronics will be granted incentives totalling Rs 500 crore under the Production Linked Incentive (PLI) program for its increased production of mobile phones during the 2020-21 period. The South Korean electronics manufacturer had submitted a claim under the PLI scheme for large-scale electronics manufacturing, which was introduced in 2020.
The unnamed government official stated, "The matter has been resolved, and the company will receive approximately Rs 500 crore." Previously, the government had raised questions about the company's claim of Rs 900 crore and had requested a review.
In response, a spokesperson for Samsung India mentioned, "We are currently in advanced discussions with the Government of India regarding the incentive payout. Samsung has been a committed partner of India for over 26 years, and as the leading smartphone player, we have collaborated closely with various stakeholders to ensure the success of the PLI scheme."
To qualify for incentives under the scheme, foreign companies are required to manufacture phones with a value exceeding Rs 15,000 per unit and achieve incremental sales of Rs 4,000 crore in the first year. The scheme, which was announced on April 1, 2020, offers incentives ranging from 4 to 6% on incremental sales over a five-year period following the base year. In the initial two years, manufacturers receive a 6% incentive, which decreases to 5% in the third and fourth years. In the final year of the scheme, the incentive drops to 4%.
Domestic manufacturers have lower investment and sales requirements under the PLI scheme. The total allocation for the scheme is Rs 40,951 crore.
The PLI scheme, launched in August 2020, has significantly contributed to boosting domestic manufacturing and smartphone exports. Smartphone exports surged from $2.5 billion in January-June 2022 to $7.5 billion during the same period this year, demonstrating its positive impact on the sector.
Source: Business Standard
Samsung
PLI scheme
incentives
mobile phone production
government official
electronics manufacturing
India
smartphone
exports
Rs 500 crore
South Korean
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